1. M.PADMINI
ASST.PROFESSOR
MKCE
Insurance Intermediaries

2. Meaning
• Insurance intermediaries are brokers or agents
who represent consumers in insurance
transactions. They are contracted with multiple
insurance companies so they can focus on
matching their client's needs with the most
suitable insurance products.

3. Definition
• According to IRDA act 1999,under section
2(1)(f) of the act states “Intermediary or
insurance intermediary includes insurance
brokers, reinsurance brokers, reinsurance
brokers ,insurance consultants, surveyors
and loss assessors”

4. Different forms of
Intermediaries
a) Insurance agents
b) Insurance brokers
c) Bancassurance
d) Micro insurance agents

5. a) Insurance Agents
• Meaning
• Types
• Eligibility
• Education qualification
• Expectations
• Necessity of agent’s training
• Training schedule and structure
• Function of agents
• An agent must not do certain things
• Rights of agent
• Liability of agent
• Remuneration to agents
• Termination of agency

6. b) Insurance brokers
• Functions of broker
• Processing of application for broker ship
• Licensing procedure
• Renewal of license
• Payment of fees
• Code of conduct for brokers:
Relationship with clients
sales practices
duty to disclose information
explanation of the contract
renewal procedure
claims,complaints,documenttation and advertising etc

7. c)Bancassurance
• Bancassurance is the partnership or
relationship between a bank and an
insurance company whereby the insurance
company uses the bank sales channel in
order to sell insurance products.

8. Bancassurance in India
• In the year 2002 the banks of India were permitted to do
insurance business for the first time.
• It is regulated by both RBI and IRDA as it is combination
of bank and insurance.
• It is a Win-Win Strategy
• Example: SBI Life Insurance Company Ltd has tie up
with SBI.

9. d)Micro insurance agents